The US securities and exchange commission is preparing to accuse Credit Suisse of misleading investors by improperly inflating its reports of assets under management in its private bank, people familiar with the case said.

Essentially the watchdog plans to allege that starting in 2012 Credit Suisse at times improperly counted client assets in the Americas as net new assets for the Swiss private bank. Investors watch net new assets closely because they are seen as a measure of how the division is performing.

Negotiations between the bank and the commission over potential civil charges are continuing and Credit Suisse is seeking to downplay the effect of the reporting on investors.

It is not clear what kind of penalties Credit Suisse might face. – Copyright The

Financial Times 2015